When it comes to buying or selling a home, conducting the proper research and "due diligence" is essential before making any purchase decisions. Homebuyers will research all sorts of factors related to a property such as details about the surrounding neighborhood, the quality of the school system or the local crime rate. However, many often overlook one of the most critical elements of due diligence that can have the greatest impact on the quality of the investment: the risk of environmental contamination.
According to the nation's leading provider of environmental information reports, Environmental Data Resources (EDR), one of the most important considerations when buying or selling a home should be the environmental risks associated with the property and its surrounding area.
Issues such as whether the home is in close proximity to a leaking underground storage tank or old landfill, next door to a hazardous waste site or perhaps even a clandestine "meth" drug laboratory-are equally as important for one's financial and physical well-being as knowing if the home is structurally sound and in a safe neighborhood. Contaminants on or near a property not only pose serious health consequences for you and your family, but can have a serious impact on the value of a property as well.
In commercial real estate, environmental due diligence has been a standard practice for nearly 20 years. Commercial real estate professionals use environmental information reports to better understand the environmental risks associated with a property and increasingly residential real estate buyers, sellers and professionals are doing the same.
Environmental information reports provide important information on known and potential contamination that exists on a property or in the surrounding neighborhood. Today, homebuyers, sellers and agents are utilizing residential environmental information reports to find out the "health" of a particular property or neighborhood and ensure a wise investment. Because contamination is often the result of long past activities and usually shows no visible signs of the dangers it poses to residents through toxic air, water or soil, professionally prepared environmental risk reports usually provide the only way to screen for these types of issues.
So, how can you make sure you're not missing this step in the "due diligence" process?
• Ask the real estate agent. Real estate agents often have access to environmental risk reports and data.
• Seek help from a qualified professional home inspector. Home inspectors are increasingly offering environmental information reports. For example, all Pillar to Post home inspectors now offer the EDR Neighborhood Environmental Report™-visit www.pillartopost.com to find an inspector.
• Search government records on your own. Federal and local government agencies, such as the EPA, keep records of environmental contamination.
For more information on environmental risks in residential real estate, or to learn how to obtain a Neighborhood Environmental Report, visit www.edr net.com/residential. |
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